Post on 20-Jan-2023
S T A T U T O R Y I N S T R U M E N T S
2015 No. 912
CIVIL AVIATION
The International Interests in Aircraft Equipment (Cape Town
Convention) Regulations 2015
Made - - - - 23rd March 2015
Laid before Parliament 26th March 2015
Coming into force in accordance with Regulation 2
CONTENTS
PART 1
INTRODUCTORY
1. Citation 3
2. Commencement 3
3. Extent 4
4. The Cape Town Convention and Aircraft Protocol 4
5. Interpretation 4
PART 2
THE INTERNATIONAL INTEREST
Recognition and application
6. International interest to have effect in the law of the United Kingdom 7
7. Description of aircraft objects 7
8. Helicopters and airframes 7
9. Exclusions and modifications by agreement 7
Registry, Registrar and Supervisory Authority
10. The Registry 8
11. The Registrar 8
12. Supervisory Authority 8
13. Enforcement of orders against the Registrar 8
Registration procedure and duration
14. Registration procedure 8
15. Duration of registration 8
PART 3
EFFECT OF INTERNATIONAL INTEREST
Priority of interests
16. Priority of competing interests 9
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17. Overriding non-consensual rights and interests 10
Remedies in case of default
18. Meaning of “default” 10
19. Remedies of chargee 10
20. Vesting of aircraft objects in satisfaction; and redemption 11
21. Remedies of conditional seller or lessor 11
22. De-registration and transfer of aircraft 12
23. Additional remedies 13
24. Requirement of commercial reasonableness 13
25. Relief pending final determination 13
Position where no default
26. Debtor’s rights 13
Assignment
27. Effect of assignment 14
28. Formal requirements of assignment 14
29. Debtor’s duty to assignee 14
30. Default remedies in respect of assignment by way of security 15
31. Priority of competing assignments 15
32. Assignee’s priority with respect to associated rights 15
33. Effect of assignor’s insolvency 16
34. Subrogation 16
35. Application to Scotland 16
Insolvency
36. Effects of insolvency 16
37. Remedies on insolvency 16
PART 4
APPLICATION TO SALES
38. Application of Regulations to sales and prospective sales 18
39. Formalities 19
40. Effect of sale 19
41. Duration of registration (sales and prospective sales) 19
PART 5
PROCEDURE
Jurisdiction
42. Choice of forum 19
43. Grant of relief 19
44. Courts with UK jurisdiction 20
45. Exclusion of insolvency proceedings 20
46. Waiver of sovereign immunity 20
47. Interpretation: “the court” 20
Rules of court
48. Effect of Rules of court 20
PART 6
GENERAL
49. Representative capacities 21
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50. Consequential amendments 21
51. Transitional provision 21
52. Review 21
SCHEDULE 1 — TEXT OF CAPE TOWN CONVENTION 22
SCHEDULE 2 — TEXT OF PROTOCOL ON AIRCRAFT EQUIPMENT 52
SCHEDULE 3 — THE INTERNATIONAL REGISTRY AND REGISTRAR 73
SCHEDULE 4 — THE SUPERVISORY AUTHORITY 73
SCHEDULE 5 — CONSEQUENTIAL AMENDMENTS 74
PART 1 — STATUTORY INSTRUMENTS 74
PART 2 — ACTS 77
The Secretary of State is designated(a) for the purposes of section 2(2) of the European
Communities Act 1972(b)in relation to property interests in moveable objects.
The Convention on International Interests in Mobile Equipment and its Protocol on matters
specific to Aircraft Equipment signed on 16th November 2001 are together to be regarded as an
EU Treaty as defined in section 1(2) of the European Communities Act 1972, by virtue of the
European Union (Definition of Treaties) (Convention on International Interests in Mobile
Equipment and Protocol thereto on matters specific to Aircraft Equipment) Order 2014(c).
The Secretary of State, in exercise of the powers conferred by section 2(2) of the European
Communities Act 1972, makes the following Regulations:
PART 1
INTRODUCTORY
Citation
1. These Regulations may be cited as the International Interests in Aircraft Equipment (Cape
Town Convention) Regulations 2015.
Commencement
2. These Regulations come into force on the date specified in Article XXVIII of the Aircraft
Protocol(d) for commencement of that Protocol.
(a) See the European Communities (Designation) (No. 2) Order 2012 (S.I. 2012/2752) art.2. (b) 1972 c.68. Section 2(2) was amended by section 27 of the Legislative and Regulatory Reform Act 2006 (c. 51) and by
section 3 of, and the Schedule to, the European Union (Amendment) Act 2008 (c. 7). The European Union (Definition of Treaties) (Convention on International Interests in Mobile Equipment and Protocol thereto on matters specific to Aircraft Equipment) Order 2014 (S.I. 2014/1885) provides for the Cape Town Convention and its Protocol on Aircraft Equipment to be regarded as an EU Treaty as defined in section 1(2) of the European Communities Act 1972, as a result of which the provisions of section 2 of the 1972 Act apply to it for the purposes of implementation in the UK.
(c) S.I. 2014/1885. (d) Article XXVIII of the Aircraft Protocol provides that it “enters into force on the first day of the month following the
expiration of three months after the date of the deposit of the eighth instrument of ratification, acceptance, approval or accession, between the States which have deposited such instruments” and, in the case of other States, “on the first day of the month following the expiration of three months after the date of the deposit of its instrument of ratification, acceptance, approval or accession.”. This date will be notified in the London, Edinburgh and Belfast Gazettes. It will also be possible to find out the date on which the Cape Town Convention and Aircraft Protocol enter into force for the United Kingdom by
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Extent
3. These Regulations extend to England and Wales, Scotland and Northern Ireland.
The Cape Town Convention and Aircraft Protocol
4.—(1) In these Regulations “the Cape Town Convention” means the Convention on
International Interests in Mobile Equipment signed at Cape Town on 16th November 2001.
(2) In these Regulations “the Aircraft Protocol” means the Protocol to the Cape Town
Convention on matters specific to Aircraft Equipment.
(3) In these Regulations “Protocol Regulations” means regulations made or approved by the
Supervisory Authority pursuant to the Aircraft Protocol.
(4) The text of the Cape Town Convention is set out in Schedule 1.
(5) The text of the Aircraft Protocol is set out in Schedule 2.
(6) The Cape Town Convention and the Aircraft Protocol may be referred to together as the
Convention on International Interests in Mobile Equipment as applied to aircraft objects.
Interpretation
5. In these Regulations—
“agreement” means a security agreement, a title reservation agreement or a leasing agreement;
“aircraft” means aircraft as defined for the purposes of the Chicago Convention which are
either airframes with aircraft engines installed thereon or helicopters;
“aircraft engines” means aircraft engines (other than those used in military, customs or police
services) powered by jet propulsion or turbine or piston technology and—
(a) in the case of jet propulsion aircraft engines, have at least 1750lb of thrust or its
equivalent, and
(b) in the case of turbine-powered or piston-powered aircraft engines, have at least 550 rated
take-off shaft horsepower or its equivalent,
together with all modules and other installed, incorporated or attached accessories, parts and
equipment and all data, manuals and records relating to them;
“aircraft objects” means airframes, aircraft engines and helicopters;
“the Aircraft Protocol” has the meaning given by regulation 4(2);
“aircraft register” means a register maintained by a State or a common mark registering
authority for the purposes of the Chicago Convention;
“airframes” means airframes (other than those used in military, customs or police services)
that, when appropriate aircraft engines are installed thereon, are type certified by the
competent aviation authority to transport—
(a) at least 8 persons including crew, or
(b) goods in excess of 2750 kilograms,
together with all installed, incorporated or attached accessories, parts and equipment (other
than aircraft engines), and all data, manuals and records relating to them;
“applicable law” means the domestic rules of the law applicable by virtue of the rules of
private international law of a State; and where a State comprises several territorial units, each
of which has its own rules of law in respect of the matter to be decided, and where there is no
indication of the relevant territorial unit—
(a) the law of that State decides which is the territorial unit whose rules govern, and
referring to the relevant page on Gov.UK. The link to that page is https://www.gov.uk/government/collections/treaty-series-2013.
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(b) in the absence of any such rule, the law of the territorial unit with which the case is most
closely connected applies;
“assignment” means a contract which, whether by way of security or otherwise, confers on the
assignee associated rights with or without a transfer of the related international interest;
“associated rights” means all rights to payment or other performance by a debtor under an
agreement which are secured by or associated with the aircraft object;
“authorised party” means the party referred to in regulation 22(6);
“the Cape Town Convention” has the meaning given by regulation 4(1);
“Chicago Convention” means the Convention on International Civil Aviation, signed at
Chicago on 7th December 1944, as amended, and its Annexes;
“commencement of the insolvency proceedings” means the time at which the insolvency
proceedings are deemed to commence under the applicable insolvency law;
“common mark registering authority” means the authority maintaining a register in accordance
with Article 77 of the Chicago Convention as implemented by the Resolution adopted on 14th
December 1967 by the Council of the International Civil Aviation Organization on nationality
and registration of aircraft operated by international operating agencies;
“conditional buyer” means a buyer under a title reservation agreement;
“conditional seller” means a seller under a title reservation agreement;
“contract of sale” means a contract for the sale of an aircraft object by a seller to a buyer
which is not an agreement (as defined);
“Contracting State” means a State party to the Cape Town Convention and the Aircraft
Protocol;
“the court” has the meaning given by regulation 47;
“creditor” means a chargee under a security agreement, a conditional seller under a title
reservation agreement or a lessor under a leasing agreement;
“debtor” means a chargor under a security agreement, a conditional buyer under a title
reservation agreement or a lessee under a leasing agreement;
“default” has the meaning given by regulation 18;
“de-registration of the aircraft” means deletion or removal of the registration of the aircraft
from its aircraft register in accordance with the Chicago Convention;
“guarantor” means a person who, for the purpose of assuring performance of any obligations
in favour of a creditor under an agreement, gives or issues a suretyship or demand guarantee
or a standby letter of credit or any other form of credit insurance;
“helicopters” means heavier-than-air machines (other than those used in military, customs or
police services) supported in flight chiefly by the reactions of the air on one or more power-
driven rotors on substantially vertical axes and which are type certified by the competent
aviation authority to transport—
(a) at least 5 persons including crew, or
(b) goods in excess of 450 kilograms,
together with all installed, incorporated or attached accessories, parts and equipment
(including rotors), and all data, manuals and records relating to them;
“insolvency office holder” means a person authorised to administer insolvency proceedings,
including one authorised on an interim basis, and includes a debtor in possession if permitted
by the applicable insolvency law;
“insolvency proceedings” means liquidation, bankruptcy, sequestration or other collective
judicial or administrative insolvency proceedings, including interim proceedings, in which the
assets and affairs of the debtor are subject to control or supervision by a court (or liquidation
committee);
“interested persons” means—
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(a) the debtor;
(b) a guarantor;
(c) any other person having rights in or over the aircraft object;
“international interest” means an interest held by a creditor to which Article 2 of the Cape
Town Convention applies;
“International Registry” means the international registration facilities established for the
purposes of the Cape Town Convention and the Aircraft Protocol;
“law of the United Kingdom” means the law of the relevant Part of the United Kingdom;
“leasing agreement” means an agreement by which one person (the lessor) grants a right to
possession or control of an aircraft object (with or without an option to purchase) to another
person (the lessee) in return for a rental or other payment;
“non-consensual right or interest” means a right or interest conferred under the law of a
Contracting State which has made a declaration under Article 39 of the Cape Town
Convention to secure the performance of an obligation, including an obligation to a State,
State entity or an intergovernmental or private organisation;
“pre-existing right or interest” means a right or interest of any kind in or over an aircraft object
created or arising before the effective date of the Cape Town Convention as defined by Article
60(2)(a);
“proceeds” means money or non-money proceeds of an aircraft object arising from the total or
partial loss or physical destruction of the aircraft object or its total or partial confiscation,
condemnation or requisition;
“prospective assignment” means an assignment that is intended to be made in the future, upon
the occurrence of a stated event, whether or not the occurrence of the event is certain;
“prospective international interest” means an interest that is intended to be created or provided
for in an aircraft object as an international interest in the future, upon the occurrence of a
stated event (which may include the debtor’s acquisition of an interest in the aircraft object),
whether or not the occurrence of the event is certain;
“prospective sale” means a sale which is intended to be made in the future, upon the
occurrence of a stated event, whether or not the occurrence of the event is certain;
“Protocol Regulations” has the meaning given by regulation 4(3);
“recognised” means recognised in the law of each Part of the United Kingdom;
“registered” means registered in the International Registry pursuant to Chapter V of the Cape
Town Convention;
“registered interest” means an international interest including an interest treated as an
international interest in accordance with article 40 of the Cape Town Convention, or in cases
where a State has made a declaration under Article 50 of the Cape Town Convention, a
national interest specified in a notice of a national interest registered pursuant to Chapter V of
the Cape Town Convention;
“Registrar” means, in respect of the Aircraft Protocol, the person or body designated by that
Protocol or appointed under Article 17(2)(b) of the Cape Town Convention;
“sale” means a transfer of ownership of an aircraft object pursuant to a contract of sale;
“secured obligation” means an obligation secured by a security interest;
“security agreement” means an agreement by which a chargor grants or agrees to grant to a
chargee an interest (including an ownership interest) in or over an aircraft object to secure the
performance of any existing or future obligation of the chargor or a third person;
“security interest” means an interest created by a security agreement;
“State” includes territory;
“State of registry” means, in respect of an aircraft, the State on the national register of which
an aircraft is entered or the State of location of the common mark registering authority
maintaining the aircraft register;
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“Supervisory Authority” means, in respect of the Aircraft Protocol, the Supervisory Authority
referred to in Article 17(1) of the Cape Town Convention;
“title reservation agreement” means an agreement for the sale of an aircraft object on terms
that ownership does not pass until fulfilment of the condition or conditions stated in the
agreement;
“unregistered interest” means a consensual interest or non-consensual right or interest (other
than an interest to which Article 39 of the Cape Town Convention applies) which has not been
registered, whether or not it is registrable under the Convention; and
“writing” means a record of information (including information communicated by
teletransmission) which is in tangible or other form and is capable of being reproduced in
tangible form on a subsequent occasion and which indicates by reasonable means a person’s
approval of the record.
PART 2
THE INTERNATIONAL INTEREST
Recognition and application
International interest to have effect in the law of the United Kingdom
6.—(1) The international interest provided for by Articles 2 to 7 of the Cape Town Convention
is recognised in relation to aircraft objects.
(2) These Regulations are subject to, and to be applied in accordance with, the provisions of—
(a) the Cape Town Convention,
(b) the Aircraft Protocol, and
(c) Protocol Regulations.
(3) In accordance with paragraph (1), the international interest has effect where the conditions of
the Cape Town Convention and the Aircraft Protocol are satisfied (with no requirement to
determine whether a proprietary right has been validly created or transferred pursuant to the
common law lex situs rule).
Description of aircraft objects
7.—(1) A description of an aircraft object that contains the information listed in paragraph (2) is
necessary and sufficient to identify the object for the purposes of Article 7(c) of the Cape Town
Convention and Article V(1)(c) of the Aircraft Protocol.
(2) The information required by paragraph (1) in relation to an aircraft object is—
(a) its manufacturer’s serial number,
(b) the name of the manufacturer, and
(c) its model designation.
Helicopters and airframes
8.—(1) Without prejudice to Article 3(1) of the Cape Town Convention, these Regulations also
apply in relation to a helicopter, or to an airframe pertaining to an aircraft, registered in an aircraft
register of a Contracting State which is the State of registry.
(2) Where the registration is made pursuant to an agreement for registration of the aircraft it is
deemed to have been effected at the time of the agreement.
Exclusions and modifications by agreement
9.—(1) The parties may, by agreement in writing, exclude the application of regulation 37.
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(2) In their relations with each other, the parties may derogate from or vary the effect of
regulations 19(1) to (3), 20(1) and (2), 21, 22 and 25(1).
Registry, Registrar and Supervisory Authority
The Registry
10. Schedule 3 makes provision about the International Registry established in accordance with
Article 16 of the Cape Town Convention.
The Registrar
11. Schedule 3 also makes provision about the Registrar appointed in accordance with Article
17(2) of the Cape Town Convention.
Supervisory Authority
12. Schedule 4 makes provision about the Supervisory Authority established in accordance with
Article 17 of the Cape Town Convention and Chapter III of the Aircraft Protocol.
Enforcement of orders against the Registrar
13.—(1) The court may make orders for or in connection with the enforcement of awards or
orders made under Article 44 of the Cape Town Convention (jurisdiction to make orders against
the Registrar).
(2) This regulation is without prejudice to the exclusivity of the jurisdiction provided for in that
Article.
Registration procedure and duration
Registration procedure
14.—(1) Registration of an international interest or other matter in accordance with the Cape
Town Convention (including any amendment or extension) has effect for the purposes of these
Regulations only if and to the extent that it complies with the provisions of Articles 18 to 20 of the
Convention (registration requirements; validity and time of registration; consent to registration) as
modified or supplemented by Article XX of the Aircraft Protocol and by Protocol Regulations.
(2) A document in the form prescribed by Protocol Regulations which purports to be a
certificate issued by the International Registry is to be taken as evidence or, in Scotland, sufficient
evidence, unless the contrary is proved—
(a) that it has been so issued, and
(b) of the facts recited in it, including the date and time of registration.
Duration of registration
15.—(1) Registration of an international interest has effect for the purposes of these Regulations
while it remains effective in accordance with the provisions of Article 21 of the Cape Town
Convention (duration of registration).
(2) The effect of registration is subject to the obligations imposed under Article 25 of the Cape
Town Convention (discharge of registration) as modified by Article XX of the Aircraft Protocol
and by Protocol Regulations.
(3) Holders of interests, intending creditors or assignees, and persons in whose favour an
incorrect or erroneous registration has been made, must comply with those obligations.
(4) This regulation is subject to regulation 41.
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PART 3
EFFECT OF INTERNATIONAL INTEREST
Priority of interests
Priority of competing interests
16.—(1) A registered interest has priority over any other interest subsequently registered and
over an unregistered interest (but this regulation is subject to regulations 17 and 51).
(2) The priority of the registered interest under paragraph (1) applies—
(a) even if the interest was acquired or registered with actual knowledge of the other interest;
and
(b) even as regards value given by the holder of the interest with such knowledge.
(3) The buyer of an aircraft object under a registered sale acquires its interest in it subject to an
interest previously registered.
(4) The conditional buyer or lessee acquires its interest in or right over that aircraft object—
(a) subject to an interest registered prior to the registration of the international interest held
by its conditional seller or lessor; and
(b) free from an interest not so registered at that time even if it has actual knowledge of that
interest.
(5) A buyer of an aircraft object under a registered sale or a registered prospective sale acquires
its interest in that aircraft object free from an interest subsequently registered and from an
unregistered interest, even if the buyer has actual knowledge of the unregistered interest.
(6) Ownership of or another right or interest in an aircraft engine is not affected by its
installation on or removal from an aircraft.
(7) The priority of competing interests or rights under this regulation may be varied by
agreement between the holders of those interests, but an assignee of a subordinated interest is not
bound by an agreement to subordinate that interest unless at the time of the assignment a
subordination had been registered relating to that agreement.
(8) Any priority given by this regulation to an interest in an aircraft object extends to proceeds.
(9) Regulation 14(1) and 15(1) have effect in accordance with Article 19(4) of the Cape Town
Convention (which provides that an interest first registered as a prospective international interest
becomes an international interest and must be treated as registered from the time of registration of
the prospective international interest provided that the registration was still current immediately
before the international interest was constituted as provided for by Article 7 of the Cape Town
Convention).
(10) Paragraph (9) applies in relation to registration whether the registration of an international
interest or of a prospective assignment of an international interest with the necessary
modifications.
(11) These Regulations—
(a) do not affect the rights of a person in an item, other than an aircraft object, installed on an
airframe, aircraft engine or helicopter, held prior to its installation if under the law of the
United Kingdom those rights continue to exist after the installation; and
(b) do not prevent the creation of rights in an item, other than an aircraft object, which has
previously been installed on an aircraft object where under the law of the United
Kingdom those rights are created.
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Overriding non-consensual rights and interests
17.—(1) The categories of non-consensual right and interest listed in paragraph (2) —
(a) have priority over an interest in an aircraft object equivalent to that of the holder of a
registered international interest, and
(b) have priority over a registered international interest (whether in or outside insolvency
proceedings).
(2) Those rights and interests are—
(a) a possessory lien in respect of work done on the aircraft object (whether before or after
the creation or registration of the international interest or equivalent interest) on the
express or implied authority of any persons lawfully entitled to possession of the aircraft
object; and
(b) any right to detain the aircraft object under an enactment (including an Act of the Scottish
Parliament, of the Northern Ireland Assembly or of the National Assembly for Wales).
(3) Nothing in these Regulations or the Cape Town Convention affects the right of a public
authority to arrest or detain an aircraft object under the law of the United Kingdom for payment of
amounts owed to a public authority directly relating to public services in respect of the aircraft
object or another aircraft object.
(4) In paragraph (3) “public authority” means—
(a) a public authority of the United Kingdom (including any Part of the United Kingdom),
(b) a public authority of another State,
(c) an intergovernmental organisation, and
(d) a private provider of public services in the United Kingdom or elsewhere.
(5) This regulation applies to categories of rights and interests whether created before or after
the deposit by the United Kingdom of the declaration under Article 39 of the Cape Town
Convention to which this regulation gives effect.
(6) A right or interest which has priority or is preserved by virtue of this regulation has priority
irrespective of whether the relevant international interest was registered before or after—
(a) any action taken by the United Kingdom in respect of the Cape Town Convention, or
(b) the enactment or commencement of these Regulations.
Remedies in case of default
Meaning of “default”
18.—(1) The debtor and the creditor may at any time agree in writing as to the events that
constitute a default or otherwise give rise to the rights and remedies specified in regulations 19 to
21 and 25.
(2) Where the debtor and the creditor have not so agreed, “default” for the purposes of
regulations 19 to 21 and 25 means a default which substantially deprives the creditor of what it is
entitled to expect under the agreement.
Remedies of chargee
19.—(1) This regulation applies—
(a) where a default has occurred, but
(b) only to the extent that the chargor has at any time agreed that the remedies specified in
this regulation should apply.
(2) The chargee may exercise any one or more of the following remedies—
(a) it may take possession or control of any aircraft object charged to it;
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(b) it may sell or grant a lease of any such aircraft object;
(c) it may collect or receive any income or profits arising from the management or use of any
such aircraft object.
(3) The chargee may alternatively apply to the court for an order authorising or directing any of
the acts referred to in paragraph (2).
(4) A chargee proposing to sell or grant a lease of an aircraft object under paragraph (2) must
give reasonable prior notice in writing of the proposed sale or lease to—
(a) a debtor or guarantor and
(b) any person other than a debtor or guarantor having rights in or over aircraft objects who
has given notice of their rights to the chargee within a reasonable time prior to the sale or
lease.
(5) A chargee giving ten or more working days’ prior written notice of a proposed sale or lease
to interested persons is deemed to satisfy the requirement of providing reasonable prior notice in
paragraph (4) (but this paragraph does not prevent a chargee and a chargor or guarantor from
agreeing to a longer period of prior notice).
(6) A sum collected or received by the chargee as a result of exercise of any of the remedies set
out in paragraph (2) or (3) is to be applied towards discharge of the amount of the secured
obligations.
(7) Where the sums collected or received by the chargee as a result of the exercise of any
remedy set out in paragraph (2) or (3) exceed the amount secured by the security interest and any
reasonable costs incurred in the exercise of any such remedy, then unless otherwise ordered by the
court the chargee must distribute the surplus among holders of subsequently ranking interests
which have been registered or of which the chargee has been given notice, in order of priority, and
pay any remaining balance to the chargor.
Vesting of aircraft objects in satisfaction; and redemption
20.—(1) This regulation applies at any time after a default has occurred.
(2) The chargee and all the interested persons may agree that ownership of (or any other interest
of the chargor in) any aircraft object covered by the security interest is to vest in the chargee in or
towards satisfaction of the secured obligations.
(3) The court may on the application of the chargee order that ownership of (or any other
interest of the chargor in) any aircraft object covered by the security interest is to vest in the
chargee in or towards satisfaction of the secured obligations.
(4) The court may grant an application under the preceding paragraph only if the amount of the
secured obligations to be satisfied by such vesting is commensurate with the value of the aircraft
object after taking account of any payment to be made by the chargee to any of the interested
persons.
(5) At any time before sale of the charged aircraft object or the making of an order under
paragraph (3), the chargor or any interested person may discharge the security interest by paying
in full the amount secured, subject to any lease granted by the chargee under regulation 19(2)(b) or
ordered under regulation 19(3).
(6) Where, after such default, the payment of the amount secured is made in full by an interested
person other than the debtor, that person is subrogated to the rights of the chargee.
(7) Ownership or any other interest of the chargor passing on a sale under regulation 19(2)(b) or
passing under paragraph (2) or (3) is free from any other interest over which the chargee’s security
interest has priority under the provisions of regulation 16.
Remedies of conditional seller or lessor
21.—(1) This regulation applies in the event of default under a title reservation agreement or
under a leasing agreement.
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(2) The conditional seller or the lessor, as the case may be, may—
(a) subject to any declaration that may be made by the United Kingdom under Article 54 of
the Cape Town Convention, terminate the agreement and take possession or control of
any aircraft object to which the agreement relates; or
(b) apply to the court for an order authorising or directing either of these acts.
De-registration and transfer of aircraft
22.—(1) In addition to the remedies specified in the preceding provisions of this Part, the
creditor may, to the extent that the debtor has at any time so agreed and in the event of a default—
(a) procure the de-registration of the aircraft; and
(b) procure the export and physical transfer of the aircraft object from the territory in which it
is situated.
(2) The creditor may not exercise the remedies specified in paragraph (1) without the prior
consent in writing of the holder of any registered interest ranking in priority to that of the creditor.
(3) The Civil Aviation Authority must, subject to any applicable safety laws and regulations,
honour a request for de-registration and export if—
(a) the request is properly submitted by the authorised party under a recorded irrevocable de-
registration and export request authorisation; and
(b) the authorised party certifies to the Authority that all registered interests ranking in
priority to that of the creditor in whose favour the authorisation has been issued have been
discharged or that the holders of such interests have consented to the de-registration and
export.
(4) A chargee proposing to procure the de-registration and export of an aircraft under paragraph
(1) otherwise than pursuant to a court order must give reasonable prior notice in writing of the
proposed de-registration and export to—
(a) A debtor or creditor; and
(b) Any person other than a debtor or creditor who has given notice of their rights to the
chargee within a reasonable time prior to the de-registration and export.
(5) Where the debtor has issued an irrevocable de-registration and export request authorisation
substantially in the form annexed to the Aircraft Protocol and has submitted such authorisation for
record to the Civil Aviation Authority, the Authority must record the authorisation.
(6) The person in whose favour the authorisation has been issued (the “authorised party”) or its
certified designee is the only person entitled to exercise the remedies specified in paragraph (1).
(7) The authorised party may exercise those remedies only in accordance with the authorisation
and applicable aviation safety enactments.
(8) The authorisation may not be revoked by the debtor without the consent in writing of the
authorised party.
(9) The Civil Aviation Authority must remove an authorisation from the registry at the request
of the authorised party.
(10) The Civil Aviation Authority must exercise its functions under the Civil Aviation Act
1982(a) and any other enactment in order to co-operate expeditiously with and assist an authorised
party in the exercise of the remedies specified in paragraph (1).
(11) Any other public authority must exercise any relevant function for that purpose.
(a) 1982 c.16.
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Additional remedies
23. Any additional remedies available in accordance with the applicable law, including any
remedies agreed upon by the parties, may be exercised to the extent that they are not inconsistent
with provisions which may not be waived by agreement under these Regulations or the Cape
Town Convention.
Requirement of commercial reasonableness
24.—(1) Any remedy given by these Regulations in relation to an aircraft object must be
exercised in a commercially reasonable manner.
(2) A remedy is deemed to be exercised in a commercially reasonable manner where it is
exercised in conformity with a provision of the agreement except where such a provision is
manifestly unreasonable.
Relief pending final determination
25.—(1) A creditor who adduces evidence of default by the debtor may, pending final
determination of its claim and to the extent that the debtor has at any time so agreed, obtain from
the court relief in the form of such one or more of the following orders as the creditor requests—
(a) preservation of the aircraft object and its value;
(b) possession, control or custody of the aircraft object;
(c) immobilisation of the aircraft object;
(d) lease or, except where covered by paragraphs (a) to (c), management of the aircraft object
and the income from it; and
(e) if at any time the debtor and the creditor specifically agree, sale and application of
proceeds.
(2) In making any order under paragraph (1), the court may impose such terms as it considers
necessary to protect the interested persons in the event that the creditor—
(a) in implementing any order granting such relief, fails to perform any of its obligations to
the debtor under these Regulations (or the Cape Town Convention or the Aircraft
Protocol); or
(b) fails to establish its claim, wholly or in part, on the final determination of that claim.
(3) Before making an order under paragraph (1), the court may require notice of the request to
be given to any of the interested persons.
(4) Nothing in this regulation affects the application of regulation 24 or limits the availability of
forms of interim relief other than those set out in paragraph (1).
Position where no default
Debtor’s rights
26.—(1) In the absence of a default, the debtor is entitled to the quiet possession and use of the
aircraft object in accordance with the agreement as against—
(a) its creditor and the holder of any interest from which the debtor takes free pursuant to
regulation 16(4) or, in the capacity of buyer, regulation 16(5), unless and to the extent
that the debtor has otherwise agreed; and
(b) the holder of any interest to which the debtor’s right or interest is subject pursuant to
regulation 16(4) or, in the capacity of buyer, regulation 16(3) but only to the extent, if
any, that such holder has agreed.
(2) Nothing in these Regulations (or the Cape Town Convention or Aircraft Protocol) affects the
liability of a creditor for any breach of the agreement under the law of any Part of the United
Kingdom in so far as that agreement relates to an aircraft object.
14
Assignment
Effect of assignment
27.—(1) Except as otherwise agreed by the parties, an assignment of associated rights made in
conformity with regulation 28 also transfers to the assignee—
(a) the related international interest; and
(b) all the interests and priorities of the assignor under these Regulations and the Cape Town
Convention.
(2) Nothing in these Regulations prevents a partial assignment of the assignor’s associated
rights.
(3) In the case of a partial assignment the assignor and assignee may agree as to their respective
rights concerning the related international interest assigned under paragraph (1) but not so as
adversely to affect the debtor without its consent.
(4) Subject to paragraph (5), the applicable law determines the defences and rights of set-off
available to the debtor against the assignee.
(5) The debtor may at any time by agreement in writing waive all or any of the defences and
rights of set-off referred to in paragraph (4) other than defences arising from fraudulent acts on the
part of the assignee.
(6) In the case of an assignment by way of security, the assigned associated rights re-vest in the
assignor, to the extent that they are still subsisting, when the obligations secured by the assignment
have been discharged.
Formal requirements of assignment
28.—(1) An assignment of associated rights transfers the related international interest only if
it—
(a) is in writing;
(b) enables the associated rights to be identified under the contract from which they arise;
and
(c) in the case of an assignment by way of security, enables the obligations secured by the
assignment to be determined in accordance with the Aircraft Protocol but without the
need to state a sum or maximum sum secured.
(2) An assignment of an international interest created or provided for by a security agreement is
not valid unless some or all related associated rights also are assigned.
(3) These Regulations do not apply to an assignment of associated rights which is not effective
to transfer the related international interest.
Debtor’s duty to assignee
29.—(1) To the extent that associated rights and the related international interest have been
transferred in accordance with regulations 27 and 28, the debtor in relation to those rights and that
interest is bound by the assignment and has a duty to make payment or give other performance to
the assignee, if (but only if)—
(a) the debtor has been given notice of the assignment in writing by or with the authority of
the assignor,
(b) the notice identifies the associated rights, and
(c) the debtor has consented in writing (whether or not the consent is given in advance of the
assignment or identifies the assignee).
15
(2) Irrespective of any other ground on which payment or performance by the debtor discharges
the latter from liability, payment or performance is effective for this purpose if made in
accordance with paragraph (1).
(3) Nothing in this regulation affects the priority of competing assignments.
Default remedies in respect of assignment by way of security
30. In the event of default by the assignor under the assignment of associated rights and the
related international interest made by way of security, regulations 18, 19, 20, 23, 25 and 48 apply
in the relations between the assignor and the assignee (and, in relation to associated rights, apply
in so far as those provisions are capable of application to intangible property) as if references—
(a) to the secured obligation and the security interest were references to the obligation
secured by the assignment of the associated rights and the related international interest
and the security interest created by that assignment;
(b) to the chargee or creditor and chargor or debtor were references to the assignee and
assignor;
(c) to the holder of the international interest were references to the assignee; and
(d) to the aircraft object were references to the assigned associated rights and the related
international interest.
Priority of competing assignments
31.—(1) Where there are competing assignments of associated rights, and—
(a) at least one of the assignments includes the related international interest, and
(b) the assignment of the international interest is registered,
the provisions of regulation 16 apply as if—
(a) references to a registered or unregistered interest were references to a registered or
unregistered assignment, and
(b) references to a registered interest were references to a prospective assignment of the
associated rights.
(2) Regulation 36 applies to an assignment of associated rights as if the references to an
international interest were references to an assignment of the associated rights and the related
international interest.
Assignee’s priority with respect to associated rights
32.—(1) The assignee of associated rights and the related international interest whose
assignment has been registered only has priority under regulation 31(1) over another assignee of
the associated rights—
(a) if the contract under which the associated rights arise states that they are secured by or
associated with the aircraft object; and
(b) to the extent that the associated rights are related to an aircraft object.
(2) For the purposes of paragraph (1)(b), associated rights are related to an aircraft object only to
the extent that they consist of rights to payment or performance that relate to—
(a) a sum advanced and utilised for the purchase of the aircraft object;
(b) a sum advanced and utilised for the purchase of another aircraft object in which the
assignor held another international interest if the assignor transferred that interest to the
assignee and the assignment has been registered;
(c) the price payable for the aircraft object;
(d) the rentals payable in respect of the aircraft object; or
(e) other obligations arising from a transaction referred to in any of sub-paragraphs (a) to (d).
16
(3) In all other cases, the priority of the competing assignments of the associated rights is to be
determined by the applicable law.
Effect of assignor’s insolvency
33. The provisions of regulation 36 apply to insolvency proceedings against the assignor as if
references to the debtor were references to the assignor.
Subrogation
34.—(1) Subject to paragraph (2), nothing in these Regulations affects the acquisition of
associated rights and the related international interest by legal or contractual subrogation under the
applicable law.
(2) The priority between any interest within paragraph (1) and a competing interest may be
varied by agreement in writing between the holders of the respective interests; but an assignee of a
subordinated interest is not bound by an agreement to subordinate that interest unless at the time
of the assignment a subordination had been registered relating to that agreement.
Application to Scotland
35. In the application of regulation 16(7) and regulations 27 to 34 to Scotland—
(a) a reference to an assignment means a contract or conveyance or any other form of transfer
which, whether by security or otherwise, confers on the assignee associated rights with or
without a transfer of the related international interest,
(b) a reference to assignment is a reference to assignation,
(c) a reference to an assignor is a reference to a cedent, and
(d) a reference to intangible property is a reference to incorporeal property.
Insolvency
Effects of insolvency
36.—(1) In insolvency proceedings against the debtor an international interest is effective if
prior to the commencement of the insolvency proceedings that interest was registered in
conformity with the Cape Town Convention and the Aircraft Protocol.
(2) Nothing in this regulation impairs the effectiveness of an international interest in the
insolvency proceedings where that interest is effective under the law of the United Kingdom or the
applicable law.
(3) Nothing in this regulation affects—
(a) any rules of law applicable in insolvency proceedings relating to the avoidance of a
transaction as a preference or a transfer to the detriment of creditors; or
(b) any rules of procedure relating to the enforcement of rights to property which is under the
control or supervision of the insolvency office holder.
Remedies on insolvency
37.—(1) Upon the occurrence of an insolvency-related event, the insolvency office holder must,
subject to paragraph (5), give possession of any aircraft object, in respect of which an international
interest has been registered, to the creditor no later than the earlier of—
(a) the end of the waiting period; and
(b) the date on which the creditor would be entitled to possession of the aircraft object if this
regulation did not apply.
17
(2) For the purposes of this regulation, the “waiting period” is 60 days from the date of the
insolvency-related event.
(3) References in this regulation to the “insolvency office holder” are references to that person
in an official, not in a personal capacity.
(4) Unless and until the creditor is given the opportunity to take possession under paragraph
(1)—
(a) the insolvency office holder must preserve the aircraft object and maintain it and its value
in accordance with the agreement; and
(b) the creditor is entitled to apply for any other forms of interim relief available under the
law of the United Kingdom.
(5) Paragraph (4)(a) does not preclude the use of the aircraft object under arrangements designed
to preserve the aircraft object and maintain it and its value.
(6) The insolvency office holder may retain possession of the aircraft object where, by the time
specified in paragraph (1), it has cured all defaults other than a default constituted by the
commencement of insolvency proceedings and has agreed to perform all continuing obligations
under the agreement; and a second waiting period does not apply in respect of a default in the
performance of such continuing obligations.
(7) With regard to the remedies in regulation 22(1)—
(a) they must be made available by the Civil Aviation Authority, no later than five working
days after the date on which the creditor notifies the Authority that it is entitled to procure
those remedies in accordance with the Cape Town Convention; and
(b) the Civil Aviation Authority must exercise its functions under the Civil Aviation Act
1982(a) and any other enactment in order expeditiously to co-operate with and assist the
creditor in the exercise of such remedies.
(8) No exercise of remedies permitted by these Regulations may be prevented or delayed after
the date specified in paragraph (1).
(9) No obligations of the debtor under the agreement may be modified without the consent of
the creditor.
(10) Nothing in paragraph (9) affects the authority, if any, of the insolvency office holder under
the law of the United Kingdom to terminate the agreement.
(11) No rights or interests, except for non-consensual rights or interests of a category covered by
regulation 17, have priority in insolvency proceedings over registered interests.
(12) In the application of this regulation—
(a) the provisions of this regulation are in addition to the provisions of Part 1 of the
Insolvency Act 1986 (in the case of company voluntary arrangements) and Schedule B1
to that Act (in the case of administration);
(b) paragraph 43 (moratorium on other legal process) and paragraph 44 (interim moratorium)
of Schedule B1 do not apply after the end of the waiting period under this regulation;
(c) a payment made for the purpose of maintaining and preserving the aircraft object in
accordance with paragraph (4) is an expense of administration;
(d) a payment made for the purpose of curing a default as mentioned in paragraph (6) for the
purpose of retaining possession is an expense of administration;
(e) paragraphs 71 and 72 of Schedule B1 (court’s power to permit disposal of property
subject to security or hire-purchase agreement) do not apply;
(f) the end of the waiting period under this regulation is without prejudice to the continuation
of insolvency proceedings in respect of assets to which these Regulations do not apply;
(a) 1982 c.16.
18
(g) the notice under paragraph 46 of Schedule B1 must include a statement that this
regulation applies, together with a statement of the effect of the application of this
regulation;
(h) the statement of the administrator’s proposals under paragraph 49 of Schedule B1 must
include details of what the administrator proposes in respect of assets to which this
regulation applies;
(i) the application of Schedule A1 to the 1986 Act (moratorium where company voluntary
arrangement proposed) is subject to paragraphs (a) to (h) (with any necessary
modifications);
(j) sections 254(1)(b) and 256(4) and (5) of the 1986 Act (individual voluntary
arrangements: interim orders) do not apply after the end of the waiting period under this
regulation.
(k) the statement of information under section 256(2)(b)(ii) must include a statement that this
regulation applies, together with a statement of the effect of the application of this
regulation.
(13) In this regulation “insolvency-related event” means the commencement of insolvency
proceedings, or the declared intention to suspend or actual suspension of payments by the debtor
where the creditor’s right to institute insolvency proceedings against the debtor or to exercise
remedies under the Cape Town Convention is prevented or suspended by law or State action.
(14) In this regulation references to the Insolvency Act 1986 include references to the equivalent
provisions of the Insolvency (Northern Ireland) Order 1989(a).
PART 4
APPLICATION TO SALES
Application of Regulations to sales and prospective sales
38.—(1) The following provisions of these Regulations apply in relation to sales and prospective
sales—
(a) regulation 6 in so far as it implements Articles 3 and 4 of the Cape Town Convention and
Article III of the Aircraft Protocol;
(b) regulation 10 and Schedule 3 in so far as they implement Article 16(1)(a) of the Cape
Town Convention;
(c) regulation 14 in so far as it implements Article 19(4) of the Cape Town Convention;
(d) regulation 14 in so far as it implements Article 20(1) of the Cape Town Convention (as
regards registration of a contract of sale or a prospective sale);
(e) regulation 15 in so far as it implements Article 25(2) of the Cape Town Convention (as
regards a prospective sale); and
(f) regulation 36.
(2) In the application of those provisions to sales and prospective sales—
(a) references to an agreement creating or providing for an international interest are to be
treated as references to a contract of sale;
(b) references to an international interest are to be treated as references to a sale;
(c) references to the debtor are to be treated as references to the seller; and
(d) references to the creditor are to be treated as references to the buyer.
(a) S.I. 1989/2405 (N.I. 19).
19
(3) In addition, the provisions of the following regulations apply generally to contracts of sale
and prospective sales—
(a) regulation 5 in so far as it implements Article 1 of the Cape Town Convention;
(b) regulation 5 in so far as it implements Article 5 of the Cape Town Convention;
(c) regulations 10, 11, 12, 13, 14 and 15;
(d) regulation 16;
(e) regulation 17;
(f) regulations 42 and 46.
Formalities
39. For the purposes of this Part, a contract of sale is one which—
(a) is in writing;
(b) relates to an aircraft object of which the seller has power to dispose; and
(c) enables the aircraft object to be identified in conformity with these Regulations and the
Aircraft Protocol.
Effect of sale
40. A contract of sale transfers the interest of the seller in the aircraft object to the buyer
according to its terms.
Duration of registration (sales and prospective sales)
41.—(1) Registration of a contract of sale remains effective indefinitely.
(2) Registration of a prospective sale remains effective unless discharged or until expiry of the
period, if any, specified in the registration.
PART 5
PROCEDURE
Jurisdiction
Choice of forum
42.—(1) Where the parties to a transaction make a written choice that the courts of any Part of
the United Kingdom are to have jurisdiction in respect of claims brought under the Cape Town
Convention, the courts have jurisdiction in accordance with this regulation.
(2) Jurisdiction in accordance with paragraph (1)—
(a) applies whether or not the United Kingdom has a connection with the parties or the
transaction; and
(b) is exclusive unless otherwise agreed between the parties.
(3) The courts of any Part of the United Kingdom must give effect to choices of jurisdiction
made in accordance with Article 42 of the Cape Town Convention as a result of which courts of
another Contracting State have jurisdiction.
Grant of relief
43.—(1) The courts of any Part of the United Kingdom may grant relief in respect of an aircraft
object under regulation 25(1)(a), (b) or (c) if—
(a) those courts are chosen by the parties, or
20
(b) the aircraft object is situated in the United Kingdom.
(2) The courts of any Part of the United Kingdom may grant relief under regulation 25(1)(d) and
(e) or other interim relief by virtue of regulation 25(4) if—
(a) those courts are chosen by the parties, or
(b) the debtor is situated in the United Kingdom, where the relief is granted in terms under
which it is enforceable only in the United Kingdom.
(3) Paragraphs (1) and (2) apply even if the final determination of the claim referred to in
regulation 25(1) will or may take place in a court of another Contracting State or by arbitration.
Courts with UK jurisdiction
44. Where the courts of any Part of the United Kingdom have jurisdiction in accordance with
this regulation, the jurisdiction is to be exercised—
(a) in England and Wales, by the High Court;
(b) in Scotland, by the Court of Session;
(c) in Northern Ireland, by the High Court.
Exclusion of insolvency proceedings
45. Regulations 42 to 44 do not apply to insolvency proceedings.
Waiver of sovereign immunity
46.—(1) A waiver of sovereign immunity from jurisdiction of the courts specified in regulation
42 or 44 or relating to enforcement of rights and interests relating to an aircraft object under these
Regulations or the Cape Town Convention—
(a) is binding, and
(b) if the other conditions for jurisdiction or enforcement have been satisfied, is effective to
confer jurisdiction and permit enforcement.
(2) A waiver must—
(a) be in writing, and
(b) contain a description of the aircraft object.
Interpretation: “the court”
47. A reference in these Regulations to “the court” is a reference to a court which has
jurisdiction in accordance with this Part (or which has jurisdiction to hear insolvency proceedings,
as the case may be).
Rules of court
Effect of Rules of court
48.—(1) A provision of these Regulations which provides for a remedy to be available from the
court has effect in accordance with any applicable Rules of court.
(2) The Rules of court may make provision about matters (including time limits) arising in
relation to rights under these Regulations, the Cape Town Convention or the Aircraft Protocol.
21
PART 6
GENERAL
Representative capacities
49.—(1) A person who does an act listed in paragraph (2) in an agency, trust or other
representative capacity is entitled to assert rights and interests under the Cape Town Convention.
(2) This subsection applies to the following acts—
(a) entering into an agreement in respect of an aircraft object,
(b) entering into a sale of an aircraft object,
(c) registering an international interest in an aircraft object, and
(d) registering a sale of an aircraft object.
Consequential amendments
50. The enactments listed in Schedule 5 are amended as specified.
Transitional provision
51. These Regulations do not apply to a pre-existing right or interest, which retains the priority it
enjoyed under the law of the United Kingdom before the effective date of these Regulations.
Review
52.—(1) The Secretary of State must, as soon as reasonably practicable after the end of the
period of 5 years beginning with the day on which these Regulations come into force—
(a) carry out a review of the effect of these Regulations, and
(b) prepare and publish a report setting out the conclusions of the review.
(2) The report must in particular—
(a) set out the objectives to be achieved by these Regulations, and
(b) assess the extent to which those objectives have been achieved.
(3) The Secretary of State must lay the report before Parliament.
Matthew Hancock
Minister of State for Business and Enterprise and Energy
23rd March 2015 Department for Business, Innovation and Skills
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SCHEDULE 3 Regulation 10
THE INTERNATIONAL REGISTRY AND REGISTRAR
Introductory
1. This Schedule makes provision about—
(a) the International Registry established in accordance with Article 16 of the Cape Town
Convention, and
(b) the Registrar appointed in accordance with Article 17(2) of the Cape Town Convention
and Article XVII of the Aircraft Protocol.
Status
2. The Registry and the Registrar are recognised.
Inviolability
3.—(1) The assets, documents, data bases and archives of the International Registry are
inviolable and immune from seizure or other legal or administrative process.
(2) The Supervisory Authority may waive the inviolability and immunity conferred by sub-
paragraph (1).
Claims against Registrar
4. For the purposes of any claim against the Registrar under Article 28(1) or 44 of the Cape
Town Convention, the claimant is entitled to access to such information and documents as are
necessary to enable the claimant to pursue its claim.
SCHEDULE 4 Regulation 12
THE SUPERVISORY AUTHORITY
Introductory
1. This Schedule makes provision about the Supervisory Authority established in accordance
with Article 17 of the Cape Town Convention and Chapter III of the Aircraft Protocol.
Recognition
2. The Supervisory Authority (identified in accordance with Article XVII of the Aircraft
Protocol) is recognised.
Status
3. The Supervisory Authority has legal personality.
4. The Supervisory Authority has the legal capacities of a body corporate, for the purposes of
entering into agreements under Article 17(3) of the Cape Town Convention, and generally.
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SCHEDULE 5 Regulation 50
CONSEQUENTIAL AMENDMENTS
PART 1
STATUTORY INSTRUMENTS
Mortgaging of Aircraft Order 1972
1.—(1) The Mortgaging of Aircraft Order 1972(a) is amended as follows.
(2) In Article 2 (interpretation)—
(a) after the definition of “the Authority” insert—
““the Cape Town Convention Regulations” means the International Interests in Aircraft
Equipment (Cape Town Convention) Regulations 2015;” and
(b) at the end add—
“(3) An expression used in this Order and in the Cape Town Convention Regulations has
the same meaning in this Order as in those Regulations.”
(3) After Article 9 (discharge of mortgages) insert—
“Transfer to international registration
9A.—(1) This article applies where the mortgagee applies to the Authority for the
removal of an entry from the register on the grounds that an international interest has been
registered, or is to be registered, under the Cape Town Convention in respect of the aircraft
to which the mortgage relates.
(2) The Authority must—
(a) enter the application in the Register;
(b) mark the relevant entries in the Register ‘Removed on application in respect of
registration of international interest’, and
(c) notify the mortgagee, the mortgagor and the owner that it has done so.”
(4) In Article 10 (rectification of the Register) after “for correcting any error therein” insert
“(including the removal of incorrect or outdated entries if the court thinks it necessary or
appropriate)”.
(5) In Article 14 (priority of mortgages) after paragraph (5) insert—
“(6) This article is subject to the rules set out in regulation 16 of the Cape Town
Convention Regulations.”;
(the paragraph inserted in the application of the Article to Scotland by Sch.2, para.1(b)(i) to the
Order becomes numbered (7)).
(6) In Schedule 2 (application to Scotland)—
(a) in paragraph 9(a) after “over the aircraft” insert “or who holds a registered interest under
the Cape Town Convention”;
(b) at the end of paragraph 9(b) add “and of every person who holds a registered interest
under the Cape Town Convention”;
(c) in paragraph 9(c) after “shall be served upon any mortgagee” insert “, and any person
who holds a registered interest under the Cape Town Convention,”;
(a) S.I. 1972/1268; amendments have been made by S.I. 1981/611, S.I. 1986/2001 and by the Criminal Justice Act 1988 c. 33
Pt V s.51.
75
(d) for paragraph 10(a) insert—
“(a) first, in payment of amounts due under a registered interest under the Cape Town
Convention;
(aa) secondly, in payment of all expenses properly incurred by him in connection with
the sale, or any prior attempted sale, of the aircraft;”;
(e) in paragraph 10(b), for “secondly,” substitute “thirdly,”;
(f) in paragraph 10(c), for “thirdly,” substitute “fourthly,”;
(g) in paragraph 10(d), for “fourthly,” substitute “fifthly,”;
(h) in paragraph 10(e), for “fifthly,” substitute “sixthly,”;
(i) in paragraph 11(1) after “as holding a mortgage over the aircraft” insert “, every person
who holds a registered interest under the Cape Town Convention,”;
(j) in paragraph 11(4), for “the owner and every person shown in the Register as holding a
mortgage over the aircraft,” substitute “the owner and every person shown in the Register
as holding a mortgage over the aircraft and every person who holds a registered interest
under the Cape Town Convention,”;
(k) in paragraph 12 after “a mortgagee in any mortgage of an aircraft registered in the United
Kingdom” insert “, or a person who holds a registered interest under the Cape Town
Convention,”.
(7) In relation to the holder of a registered interest under the Cape Town Convention—
(a) the reference in paragraph 9 of Schedule 2 to 60 days is to be taken as a reference to 10
days (unless a longer period is agreed between the parties), and
(b) the reference in paragraph 11(4) to 30 days is to be taken as a reference to 10 days (unless
a longer period is agreed between the parties).
(8) Nothing in Schedule 2 prevents the holder of a registered interest under the Cape Town
Convention from exercising a remedy under these Regulations or in accordance with the Cape
Town Convention or the Aircraft Protocol.
Civil Aviation (Chargeable Air Services) (Detention and Sale of Aircraft) Regulations 2001
2.—(1) The Civil Aviation (Chargeable Air Services) (Detention and Sale of Aircraft)
Regulations 2001(a) are amended as follows.
(2) In regulation 2 (interpretation) after the definition of “authorised person” insert—
““the Cape Town Convention Regulations” means the International Interests in Aircraft
Equipment (Cape Town Convention) Regulations 2015;”.
(3) In regulation 7 (application of proceeds of sale) at the end add “(with priority being given to
any person or persons having an international interest within the meaning of the Cape Town
Convention Regulations, in accordance with the rules set out in regulation 16 of those
Regulations)”.
(4) In the Schedule (notice of application to court)—
(a) in paragraph 1(1) (requirement to give notice) after paragraph (e) insert—
“(ea) any person who has an international interest in the aircraft in accordance with the
Cape Town Convention Regulations;”; and
(b) in paragraph 2(2) for “shall be served” substitute “may be served by any reasonable
electronic means or”.
(a) S.I. 2001/493.
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Civil Aviation (Chargeable Air Services) (Detention and Sale of Aircraft for Eurocontrol)
Regulations 2001
3.—(1) The Civil Aviation (Chargeable Air Services) (Detention and Sale of Aircraft for
Eurocontrol) Regulations 2001(a) are amended as follows.
(2) In regulation 2 (interpretation) after the definition of “authorised person” insert—
““the Cape Town Convention Regulations” means the International Interests in Aircraft
Equipment (Cape Town Convention) Regulations 2015;”.
(3) In regulation 8 (application of proceeds of sale) at the end add “(with priority being given to
any person or persons having an international interest within the meaning of the Cape Town
Convention Regulations, in accordance with the rules set out in regulation 16 of those
Regulations)”.
(4) In the Schedule (notice of application to court)—
(a) in paragraph 1(1) (requirement to give notice) after paragraph (e) insert—
“(ea) any person who has an international interest in the aircraft in accordance with the
Cape Town Convention Regulations;”; and
(b) in paragraph 2(2) for “shall be served” substitute “may be served by any reasonable
electronic means or”.
Air Navigation Order 2009
4.—(1) The Air Navigation Order 2009(b) is amended as follows.
(2) At the end of article 7 (changes to the register) add—
“(6) (The CAA must also cancel the registration of an aircraft as soon as reasonably
practical if satisfied that a person wishes and is entitled to procure the de-registration of the
aircraft in accordance with Article IX (modification of default remedies provisions) of the
Aircraft Protocol (within the meaning of the International Interests in Aircraft Equipment
(Cape Town Convention) Regulations 2015).
(7) Paragraph (6) is subject to regulation 51 of the 2015 Regulations (disapplication in
respect of pre-existing rights and interests).”
(3) After article 8 (aircraft which are entered in the Register of Aircraft Mortgages) insert—
“Aircraft subject to an international interest
8A.—(1) This article applies to an aircraft—
(a) which is the subject of a registered international interest within the meaning of the
International Interests in Aircraft Equipment (Cape Town Convention) Regulations
2015, and
(b) in respect of which an irrevocable de-registration and export request authorisation
is in force.
(2) The registration of an aircraft to which this article applies does not become void by
virtue of article 7(1).
(3) The CAA may cancel the registration of an aircraft to which this article applies under
article 7(4) only in pursuance of an application made by a person who is recorded, in
accordance with regulation 22 of the 2015 Regulations, as the authorised party under an
irrevocable de-registration and export request authorisation in respect of the aircraft.
(a) S.I. 2001/494. (b) S.I. 2009/3015.
77
(4) Article 8(2) does not apply to an aircraft to which this article applies (subject to
regulation 51 of the 2015 Regulations (transitional provision)).
(5) Expressions used in this article have the same meaning as in the 2015 Regulations.”
Greenhouse Gas Emissions Trading Scheme Regulations 2012/3038
5. At the end of paragraph 8(2)(g) of Schedule 9 to the Greenhouse Gas Emissions Trading
Scheme Regulations 2012(a) (Detention and sale of aircraft: procedure for applying for leave to
sell aircraft) add “(including an international interest within the meaning of the International
Interests in Aircraft Equipment (Cape Town Convention) Regulations 2015)”.
PART 2
ACTS
Bills of Sale Act 1878
6. The Bills of Sale Act 1878(b) (and any equivalent applying to Northern Ireland) is not to
apply to a security agreement which creates or provides for an international interest.
Bills of Sale Act (1878) Amendment Act 1882
7. The Bills of Sale Act (1878) Amendment Act 1882(c) (and any equivalent applying to
Northern Ireland) is not to apply to a security agreement which creates or provides for an
international interest.
Civil Aviation Act 1982
8.—(1) Section 88 of the Civil Aviation Act 1982(d)(detention and sale of aircraft for unpaid
airport charges: application of proceeds) is amended as follows.
(2) At the end of subsection (6) add “(with priority being given to any person or persons having
an international interest within the meaning of the Cape Town Convention Regulations, in
accordance with the rules set out in regulation 16 of those Regulations)”.
(3) After subsection (6) insert—
“(6A) In subsection (6) “the Cape Town Convention Regulations” means the
International Interests in Aircraft Equipment (Cape Town Convention) Regulations 2015.”
Companies Act 2006
9. Section 859A of the Companies Act 2006(e) (charges created by a company: registration) is
not to apply to a charge which is an international interest.
(a) S.I. 2012/3038. (b) 1878 c.31. (c) 1882 c.43. (d) 1982 c.16; section 88 is amended by the Transport Act 2000 (c. 38) section 97, Schedule.8 (Part 3) paragraph.6(2) and 6(3),
the Airports Act 1986 (c.31), section 83(5), Schedule. 6 Part.1, the Local Government etc. (Scotland) Act 1994 (c. 39) section 180(1), (2), Schedule 13 paragraphs 126(4), Schedule.14, and the Civil Aviation Act 2006 (c. 34) section 13, Schedule 2 paragraph 2.
(e) 2006 c.46; section 859A was inserted by the Companies Act 2006 (Amendment of Part 25) Regulations S.I. 2013/600 Schedule.1 paragraph.1.
78
EXPLANATORY NOTE
(This Note is not part of the Regulations)
These Regulations give effect in UK law to the Cape Town Convention on International Interests
in Mobile Equipment, together with its Protocol on Matters Specific to Aircraft Equipment.
Regulation 6 provides for the international interest provided for by Articles 2 to 7 of the Cape
Town Convention as modified by the Aircraft Protocol (including articles II, III and IV of the
Aircraft Protocol) to have effect in UK law.
A full impact assessment of the effect that this instrument will have on the cost of business, the
voluntary sector and the public sector is available from the Department for Business, Innovation
and Skills on the gov.uk website (www.gov.uk). An Explanatory Memorandum and a
transposition note are available alongside the instrument on the www.legislation.gov.uk website.
Copies have also been placed in the Libraries of both Houses of Parliament.
© Crown copyright 2015
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